B.Grimm takes hit as gas prices soar
B.Grimm Power Plc (BGRIM) reported a leap of 41% in first-quarter revenue thanks to robust electricity sales volume from both existing and new clients, higher tariffs, and growth from renewable energy facilities in Thailand and Laos.
However, Harald Link, BGRIM chairman and president, said net profit attributable to the parent company between January and March declined by 96.2% from the same period last year to 23 million baht.
The lower profit was attributed to the declining performance of industrial power plants weighed down by the sharp rise in natural gas prices amid the Russia-Ukraine war, while the adjustment of power prices was gradual. As a result, margins from electricity sold to the company’s industrial customers dropped.
BGRIM continued to manage costs by preparing the import of liquefied natural gas (LNG) under long-term contracts from 2023, as well as concluding a terminal usage agreement with PTT LNG.
The company said its financial position was solid, with more than 26 billion baht in cash on hand. There are stable cash flows from 53 power plant projects already in operation.
BGRIM’s five small power producer replacement stations are projected to be up and running in the second half this year.
These modern plants are built to replace older ones and are more fuel-efficient, capable of reducing gas consumption by about 15%, said the firm.
Improvements to the BPWHA and ABP4 plants have begun, with the introduction of digital twins technology from Siemens to optimise plant maintenance.
In response to rising fuel prices, the Energy Regulatory Commission raised electricity charges under the fuel adjustment clause known as Ft, starting from 16.17 satang per kilowatt-hour (kWh) in January and up to 23.38 satang/kWh in May. Further adjustment is expected in September.
An 88-megawatt solar farm in Malaysia, a joint venture between BGRIM and reNIKOLA Group in Malaysia, is expected to come online this year. These factors should contribute positively to BGRIM’s performance for the rest of this year, said the firm.
As for projects under construction, the 18MW U-Tapao Solar Power Plant Phase 1 in Rayong is 65% complete and due to start commercial operations by the end of this year.
The BGPAT2 & BGPAT3 power projects, each with an installed capacity of 140MW, are on track for operational start-up next year.
BGRIM has 53 projects in operation and targets an aggregate installed capacity from new projects, both from greenfield and acquisitions at home and abroad, of at least 1 gigawatt this year.
The company aims to have 7,200MW of power sales contracts by 2025, rising to 10,000MW by 2030.
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Year-on-year net profit between January and March declined by 96.2% to 23 million baht. HARALD LINK CHAIRMAN AND PRESIDENT, B.GRIMM POWER